Krungsri reaffirms its position as a “Regional Bank”,accelerating its business expansion in ASEAN,ready to support customers’ overseas growth
Bangkok (13 September 2021) – Krungsri (Bank of Ayudhya PCL) reaffirms its position as a regional bank, driving towards its goal of connecting customers’ needs across ASEAN. After continuously laying a strong foundation in ASEAN, Krungsri aims to grow through business expansion, joining forces with MUFG and partners, leveraging extensive expertise and network to support customers to seize opportunities and grow overseas, along with developing financial innovations to boundlessly connect customers’ needs.
Mr. Pairote Cheunkrut, Krungsri Chief Strategy Officer, said “Krungsri has been continuing to expand its business to the ASEAN region over the past 10 years in order to lay a strong foundation of being a regional bank. As a result, Krungsri currently has a network and businesses which cover the whole region and enable Krungsri to bring new opportunities for business expansion and growth for Krungsri’ s customers in the ASEAN region as well. Moreover, Krungsri has succeeded in pushing for cooperation in the development of financial innovations that help increase business opportunities or support more efficient international transactions with lower costs and maximized benefits to customers. This ASEAN Expansion Strategy is one of the key strategic directions under the current Medium Term Business Plan covering 2021 – 2023, which Krungsri has set a target to increase the overseas net income to 10% of total net income within 2023.”
“Krungsri’ s unique strength that becomes our competitive advantage is having Mitsubishi UFJ Financial Group (MUFG), one of the world’s largest financial institutions with a strong network in over 50 countries, as its supporting mainspring, making Krungsri the only Thai financial institution that has the largest network in ASEAN and has the knowledge, expertise, and capacity to offer world-class products to meet the financial needs of the customers in Thailand, the ASEAN region, and on a global scale.” Mr. Pairote added.
MUFG’s network and expertise in business operation create international cooperation and opportunities for Krungsri’s customers to continuously expand their business in the region. Examples of such include the opportunity to meet up and negotiate trade deals between Thai and ASEAN entrepreneurs through networks and business matching services, the interconnection of international payment transactions, the development of suitable financial solutions for the customers’ smooth business operations overseas, as well as taking the partners’ role to provide comprehensive financial information, knowledge, and consultation. For retail customers, Krungsri has also developed systems for payment transactions to meet the needs of customers in the digital era.
At present, Krungsri operates the business and has a strong network covering 4 ASEAN countries in the form of the branch office, representative office, local bank, and local financial service provider. These include Krungsri’ s branch offices in Vientiane, retail loan business, and Krungsri Non-Deposit Taking Microfinance Institution Co., Ltd. in Lao PDR, a commercial bank in Cambodia, retail loan business in the Philippines, and a representative office in Myanmar, all of these are excluding MUFG’s network and partner banks. Recently, in August 2021, Krungsri has reached an agreement with Saigon-Hanoi Commercial Joint Stock Bank (“SHB”), the fifth-largest joint venture bank in Vietnam, to purchase and receive the transfer of 100% of the Charter Capital of SHBank Finance Company Limited (“SHB Finance”), Vietnam’s top 10 retail finance company. This transaction is currently under the regulatory approval of the relevant supervisory authorities.
“Krungsri continues to seek further opportunities to expand business in ASEAN reaffirming its position as a regional bank, moving towards the aspiration of being “the preferred Thai bank connecting customers’ needs across ASEAN.” Mr. Pairote concluded.